Every heating company says it is reliable, experienced and fair. None of that can be checked from a website, including this one. What can be checked is a short list of facts: whether the company holds the licence the work requires, whether it carries insurance, whether it pulls the permits, and whether its quote and its diagnosis stand up to a few questions.
This guide is that list. It is written to help you evaluate any contractor, including us and including our competitors, and every item on it is something you can confirm yourself, from a public record or from the contractor’s own paperwork, without taking anyone’s word for it.
1. The licence, checked with the right authority
Which authority licenses a heating contractor depends on where the house is.
Inside the City of Boulder. The city licenses mechanical contractors. Its contractor licensing page defines one as “a person that undertakes or performs, with or for another, any mechanical installation, alteration, repair or other work in the city for which a mechanical permit from the city is required under this code.” It is explicit that “no person shall perform any work as a mechanical contractor in the city without first obtaining a mechanical contractor license to perform such work,” and that “no mechanical permit shall be issued for work to be done by a person who does not have a valid, current mechanical contractor’s license as required by the city for the type of work to be performed, except for a homeowner performing work on their own home.”
The city also says it “does not accept reciprocal licenses from other jurisdictions,” and that “licenses issued for the City of Boulder are for work being performed INSIDE city limits.”
To check a company, the city offers two routes: “Search for a licensed contractor on our Customer Self Service portal,” and “a list of City of Boulder-licensed contractors updates regularly on the City of Boulder Open Data webpage.”
In unincorporated Boulder County. The county runs its own programme. Its page explains that “the Colorado State Legislature granted counties the authority to establish contractor licensing programs,” and that “Boulder County licenses contractors for work in the unincorporated county.” Among its licence types is “Residential Mechanical: Residential mechanical installations and repair.” It also notes that “plumbers and electricians are licensed by the State of Colorado.”
In other towns. Each town’s building department can tell you what licence it requires for heating work and how to check one. Ask before the work is scheduled.
The FTC’s general advice fits all three: “Consider only contractors who are licensed and insured. Check with your state or county government to confirm a contractor’s license, and ask the contractor for proof of insurance.”
2. Insurance, on paper
A licensed contractor in the City of Boulder must carry insurance, and the city’s licensing page states the terms. “Every contractor granted a license is required to maintain a certificate of insurance,” it says, including “General Liability Insurance – minimum limits of $1,000,000 per occurrence and a $2,000,000 aggregate limit” and “Workers’ Compensation Insurance as required by Colorado Revised Statutes for any employee other than the licensee.” Boulder County’s licence requirements include “providing proof of contractor’s liability and workman’s compensation insurance.”
Those are the city’s and county’s licensing requirements. For your own job, the FTC’s advice is to “ask the contractor for proof of insurance.” A certificate of insurance names the insurer, the policy and its dates. Check that the name on it matches the company on the quote.
3. Permits, pulled by the contractor
Some heating work needs a permit, and the licence and the permit are linked. In the City of Boulder, as quoted above, no mechanical permit is issued to someone without the right licence, other than a homeowner working on their own home. Boulder County lists “failure to obtain a building permit” among the reasons it may suspend or revoke a contractor’s licence.
The FTC names the warning sign: “Scammers ask you to get any required building permits.” A contractor who wants you to pull the permit yourself is asking you to take on a responsibility that belongs to them. Ask each company whether the job needs a permit and who will pull it, and get the answer on the quote.
4. A home evaluation, not a guess
For a replacement, the quote is only as good as the evaluation behind it. ENERGY STAR’s hiring advice says to “expect a home evaluation”: “The contractor should spend significant time inspecting your current system and home to assess your needs. A bigger system isn’t always better; a contractor should size the heating and cooling system based on the size of your house, level of insulation, and windows.” It adds that “a good contractor will inspect your duct system (if applicable) for air leaks and insulation and measure airflow to make sure it meets manufacturers specifications.”
The sizing has a named method. The Air Conditioning Contractors of America describes its Manual J 8th Edition as “the national ANSI-recognized standard for producing HVAC equipment sizing loads for single-family detached homes,” and says that “a proper load calculation, performed in accordance with the Manual J 8th Edition procedure, is required by national building codes and most state and local jurisdictions.”
The question to ask is simple: was a load calculation done for my house, and can I see it? A replacement sized by matching the old furnace’s label is not the same thing.
The ducts have a matching method. ACCA says its Manual D “provides a single set of ANSI-recognized duct sizing principles and calculations that apply to all duct materials.” Its current edition covers the “impacts of excess length, sag, and compression in flexible ducts.” If a replacement changes the equipment’s airflow, it is fair to ask whether the existing ducts were checked against it.
ENERGY STAR adds a check on efficiency claims: “Contractors should be able to show you calculations of savings for ENERGY STAR heating and cooling equipment.” A savings figure without the calculation behind it is a sales line.
The furnace’s own installation manual is also a document you can ask about. It sets the numbers the finished job has to meet, such as the temperature rise listed on the nameplate and the static pressure range on the rating plate. A contractor who commissions the job against those numbers can tell you what they measured.
5. A written, itemised quote
The FTC’s advice: “Get multiple estimates. A written estimate should include a description of the work to be done, materials, completion date, and the price. Don’t automatically choose the lowest bidder. And ask for an explanation if there’s a big difference among the estimates.” ENERGY STAR’s is to “get written, itemized estimates,” and to “compare cost, energy efficiency and warranties.”
For repairs, see furnace repair. For rebates that depend on which contractor installs the equipment, see winter heating rebates and credits in Boulder.
6. References you actually call
ENERGY STAR suggests two sources. “Ask friends, neighbors, and co-workers for contractor referrals,” and “ask contractors for customer references and call them. Ask about the contractor’s installation or service performance, and if the job was completed on time and within budget.”
The FTC adds records and reviews: “Check with the local Home Builders Association and consumer protection officials to see if they have complaints against a contractor. Also search online for the company’s name with words like ‘scam,’ ‘review,’ or ‘complaint.'” And: “Read reviews with a critical eye.”
7. A signed proposal before work starts
ENERGY STAR: “Sign a written proposal with a contractor before work gets started. It’ll protect you by specifying project costs, model numbers, job schedule and warranty information.”
The FTC lists what the contract should include before you sign, among them “the contractor’s name, address, phone number, and license number,” “an estimated start and completion date,” and “any promises made during conversations or calls related to issues such as the scope of work and the cost of labor and materials.” It adds: “make sure all blank spaces are filled in.”
On payment: “Don’t pay the full amount for the project up front,” and “never make the final payment until the work is done and you’re satisfied with it.”
The warning signs
The FTC’s list of tactics that point to a contractor who may not be reputable:
- “Scammers knock on your door looking for business because they are ‘in the area.'”
- “Scammers say they have materials left over from a previous job.”
- “Scammers pressure you for an immediate decision.”
- “Scammers ask you to pay for everything up front or only accept cash.”
- “Scammers ask you to get any required building permits.”
- “Scammers suggest you borrow money from a lender they know.”
On financing specifically, the FTC’s advice is to “never agree to financing through your contractor without shopping around and comparing loan terms,” and “don’t let anyone pressure you into signing any document.”
A furnace that fails in winter creates exactly the pressure these tactics rely on. The checks above take less time than they appear to. The licence check is a search; the insurance check is a document; the permit question is one line on the quote.
Before you call anyone
ENERGY STAR’s first tip is to “study up”: “Find out about license and insurance requirements for contractors in your state. And before you call a contractor, know the model of your current system and its maintenance history. Also make note of any uncomfortable rooms. This will help potential contractors better understand your heating needs.”
A contractor who asks about those things, and about the rooms that do not heat, is doing the evaluation ENERGY STAR describes. One who quotes a replacement without looking is not.
For what the symptoms can mean before anyone arrives, see how a furnace’s safety switches work and furnace won’t turn on. For the wider picture, see the guide to winter heating in Boulder.
If something goes wrong
The FTC’s advice if a job goes badly: “First try to resolve it with the contractor.” “Follow any phone conversations with a letter you send by certified mail. Request a return receipt, so you can prove that the company got your letter. Keep notes and copies of letters and documents for your files.” If that fails, it suggests outside help from “your state attorney general or local consumer protection office,” “your local home builders association” and “dispute resolution programs.”
In the City of Boulder or unincorporated Boulder County, the licensing authority is also worth telling. The county notes that its Building Official “may suspend or revoke an issued license” for reasons that include “failure to maintain insurance,” “failure to obtain a building permit,” “failure to comply with the code” and “working outside the scope of the license.”
Frequently asked questions
How do I choose an HVAC contractor? Check what can be verified: the licence with the city or county where the work is, a certificate of insurance, who pulls the permit, whether a load calculation was done for a replacement, and a written, itemised quote. Then call references. ENERGY STAR and the FTC both publish checklists that cover the same ground.
What are signs of a bad HVAC contractor? The FTC lists door-to-door selling because they are “in the area,” pressure for an immediate decision, asking for everything up front or cash only, asking you to get the permits, and steering you to a lender they know. Declining to show a licence or a certificate of insurance is another.
What questions should I ask my HVAC contractor? Are you licensed for this work where my house is? Can I see your certificate of insurance? Does the job need a permit, and will you pull it? Did you do a load calculation, and can I see it? What exactly is in the quote, and what warranty covers the parts and the labour?
What are red flags when hiring a contractor? Pressure to sign now, a request to pay in full up front, a request that you pull the permit, blank spaces in the contract, and financing arranged by the contractor without a chance to compare terms. All of these appear on the FTC’s list.
How do you tell a contractor you are unhappy with their work? In writing. The FTC advises you to “first try to resolve it with the contractor,” to follow phone conversations “with a letter you send by certified mail,” and to keep copies. If that fails, contact your state attorney general or local consumer protection office.
What is the $5,000 rule for HVAC? It is a rule of thumb for deciding between repair and replacement, with no standards body behind it. It does not replace a diagnosis, a load calculation or a comparison of written quotes.
Sources
- City of Boulder, Contractor Licensing (mechanical contractor definition, licence required, insurance requirements, finding a licensed contractor) – https://bouldercolorado.gov/services/contractor-licensing
- Boulder County, Contractor Licensing in Unincorporated Boulder County – https://bouldercounty.gov/property-and-land/land-use/building/contractor-licensing/
- Federal Trade Commission, How To Avoid a Home Improvement Scam (July 2022) – https://consumer.ftc.gov/articles/how-avoid-home-improvement-scam
- ENERGY STAR, 10 Tips for Hiring a Heating and Cooling Contractor – https://www.energystar.gov/saveathome/heating-cooling/10-tips-hiring
- Air Conditioning Contractors of America, Manual J Residential Load Calculation – https://www.acca.org/standards/technical-manuals/manual-j
- Air Conditioning Contractors of America, Manual D Residential Duct Design – https://www.acca.org/standards/technical-manuals/manual-d
- Goodman, Installation Instructions for *M9S80 & *C9S80 gas furnaces (temperature rise, static pressure) – https://documents.alpinehomeair.com/product/goodmangm9s8gc9s8installationmanual.pdf
